If an Impairment Loss Recognised in Prior Periods for a Revalued

question 73

Multiple Choice

If an impairment loss recognised in prior periods for a revalued asset no longer exists,IAS 36 Impairment of Assets requires a reporting entity to:

• A)reverse the impairment loss to increase the asset to its recoverable amount.
• B)reverse the impairment loss in profit and loss, only if the asset adopts the revaluation model.
• C)treat this as a prior period adjustment and recognise the reversal as a gain.
• D)ignore this information as previously written off assets are precluded from being reinstated.

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Definitions:

Market Share

Refers to the portion of a market controlled by a particular company, product, or brand.

Smartphones

Portable electronic devices that combine mobile communication and computing functions.

Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation and communication systems, utilities, and public institutions.

Technological Resources

Tools and systems that utilize technology to support various activities, including information access, communication, and operational efficiency.